The Deposit Protection Service (DPS) has welcomed the new rules relating to the protection of deposits on tenancies worth between £25,000 and £100,000 a year, due to come into force from October 2010.
Previously, tenancy deposit legislation covered Assured Shorthold Tenancies (ASTs) of up to £25,000. A tenancy valued above this is not classed as an AST, but is in fact a contractual tenancy; meaning deposits did not need to be protected by law. This change in legislation is anticipated to bring around 15,000 new tenancies under the umbrella of deposit protection.
The change has come about because the original legislation left some groups vulnerable. For example, bond protection might not be necessary for a big earner in the city paying over £25,000 per year in rent; however a large group of students could easily exceed annual rent of £25,000. This change to the legislation is designed to ensure groups such as this are offered fair protection by the law.
In other news also related to deposit protection, The Dispute Services (TDS), which is responsible for the UK’s Tenancy Deposit Scheme, has recently increased its fees.
Despite this, the National Landlords’ Association (NLA) has indicated that the increases should not detract from the purpose of tenancy deposit protection; to offer legal protection for tenants where landlords withhold all or part of a deposit without due cause.
The Chairman of the NLA, David Salusbury, said “All-in-all, tenancy deposit protection legislation has proven to be a success and current issues must not alter this message.”
Watch this space for more news relating to the area of deposit protection, as CPS Homes continues to lead the market in keeping you up to date with the latest legislation changes that affect you.